COPE 378 Responds to BC Liberal Energy Policy Announcement

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Over the past few days the BC Liberals have announced a major energy policy shift to relax their own misguided “self-sufficiency” policy and move to focus on Liquefied Natural Gas (LNG) production.

The first aspect is encouraging, as many of you will know COPE 378 has been a vocal critic of the “self-sufficiency” policy since the Liberals first introduced it in 2007. The policy, which forced BC Hydro to purchase overpriced power from private producers even when not needed, has been a significant factor in BC Hydro’s financial problems.

Unfortunately, the government’s announcement was only that “self-sufficiency” requirements would be eased, not eliminated, demonstrating they are still too tied to private power interests and continue to be unwilling to take responsibility for their mismanagement. COPE 378 believes government can show it is really committed to taking action by cancelling proposed run-of-the-river private power projects that have not yet been built, such as those planned for the Kokish, Upper Lillooet, Harrison, and Upper Toba.

In moving toward increased investment in LNG, COPE is urging the government and BC Hydro to ensure that LNG companies pay their fair share of the costs they will generate. Another key factor in Hydro’s financial difficulties has been the high rate at which Hydro subsidizes power purchases for large resource companies.

Adding this new load to the system will result in incremental cost increases, which the LNG companies should shoulder. COPE 378 is asking the government to demonstrate responsibility by showing that BC residents and other Hydro customer groups won’t be paying more to subsidize large LNG corporations.

Gwenne Farrell
Vice-President, Utilities